The growth of the economy relies on small business across the United States. The overwhelming majority of businesses within this economy are small businesses. Unfortunately, this study found that many young entrepreneurs today are hindered, due to many conditions within our current economic position. Those who fail to conduct business plans, especially in the current time are often unaware of new regulatory costs, business expenses, and competition within their communities. This study examines those who are unaware and aware of these given aspects and are challenged to start and maintain their business ventures. With an interview and a survey provided in this study, business owners gave insight on their financial situations and struggles alike. Overall, the conclusion of this study fears entrepreneurs today face many challenges that have proven difficult to get their businesses started and maintained.
Entrepreneurial Struggles Today
Small businesses in the United States of America have for a long time been the foundation for economic growth. They are easier to start because they only require some capital, and if they succeed, the country gains more benefit from an entrepreneur than it would from a governmentally backed industry. Since small businesses employ the majority of workers in the U.S., the nation gains more from the entrepreneurs because they pump in new jobs, more tax revenue, and they decide the nation’s economic growth if successful. Also, the thought of the so called “American Dream” rings loudly for these entrepreneurs who have the idea of making it from the bottom to the top. If successful, we as a country, have yet another story of a hard working individual who makes it from rags to riches. On the other hand, there are many downfalls for American entrepreneurs who fail to have on hand the necessary capital, or mismanage their business plan, or lack the proper strategy to continue their business ventures. Nonetheless, small businesses today and the idea of the American Dream have been put into question. Since the Great Recession of 2008, small businesses and the entrepreneurs who own them face more challenges in growing their companies. With more government regulation and rising costs for supplies, American entrepreneurs face challenges that may hinder them from creating a successful business. What General Problems Do Entrepreneurs Face in Starting a Business? Problems and challenges are inevitable in a young entrepreneur’s life, but what are the problems that create the majority of their issues in starting a business? Start-up businesses typically have a more difficult time attracting customers than more established companies. Moreover, young entrepreneurs are vulnerable to the newness of their company. Having a quality product to fulfill a customer’s wants and desires is important, but if there are questions regarding the legitimacy of the company, prospective customers will tend to stray and look elsewhere. Convincing prospective customers to buy is a necessary concern for an entrepreneur to grow sales. Jade. S. Dekinder (2008) provides an insight on the difficulties of gaining customers when she states, “This is particularly difficult because of prospective customers’ lack of experience with the start-up and the paucity of prior customers that may serve as references” (p. 85). Therefore, how do prospective customers assure themselves of a start-up’s product quality? For example, customers rely on brands and advertising as indicators of a firm’s product quality. However, these typical marketing signals are less useful to customers considering purchasing from a start-up because start-ups typically have “reputationless” brands, and their budgets for such advertisements are small. In conducting an interview with Jackie McCleskey, a local sole proprietor who owns a hair salon, I asked, “What strategies did you use to gain clientele? She answered, “I mainly rely on my...
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